Dropshipping Accountant

How Can A Dropshipping Accountant Help My Ecommerce Business?

Dropshipping is not new to our society. Its popularity increased in 2010 when the Chinese market became more accessible with the introduction of Aliexpress. Also, setting up the eCommerce website has become smoother with Shopify, which was introduced in 2010.

The cost and risks in setting up the online drop shipping business were reduced drastically, which was a ray of hope for entrepreneurs and other small business owners who wish to enter the eCommerce world. Now in 2021, dropshipping is very common.

So, what is dropshipping? It is the method where the seller sells products to their customers without holding any stock. The dropshipping business relies on the supplier to store and fulfill the customer’s orders. After customers check out or pay for the product, they place the dropship order with the supplier, who will complete the fulfillment process.

Ecommerce Business 1

Building a successful dropshipping business:

Suppose you are someone who has already established a business that carries the inventory. In that case, you can also use the dropship as an additional fulfillment method for further company improvement. For example, you are selling loose tea leaves and have set up an inventory warehouse and logistics solutions.

To fulfill the orders, you can use dropshipping to offer the products that complement your primary business without investing in the warehouse. Here are some ways dropshipping help the company grows:

  1. Ability to test the new products – While running a business, you might think about expanding your catalog, or you may look at adding additional accessories that complement the main product. You can utilize dropshipping to test the customer demand for those products without over-committing.

This process will help you save money and warehouse space since you don’t have to find new space to store the products. On top of this, you can avoid the cash locked in the products that might not get you profit. You can get all these advantages without compromising on order fulfillment and payment processing.

  1. Lower shipping cost – As the business growsxtensive, you may enter international transactions since you will have clients from different parts of the world. With drop shipping, you can enjoy the flexibility and low shipping costs it offers to ship products worldwide. The dropship supplier will serve as an additional base to fulfill the orders, especially when the customers are in other countries.
  2. Compensate when there are unexpected fluctuations in the orders. Suppose you face irregular order volumes or an unexpected spike in demand for the product. In that case, drop shipping will further complement the business in fulfilling the orders at these times. With the industry supported by dropshipping, you can continue fulfilling the demand for the product without any delay or expensive express shipping charges.
  3. Cut down the storage costs of products – If you deal with the products that need special attention, such as high-value products or products that require special storage conditions, you will spend more on their storage.

Instead of investing in the costly warehouses equipped to protect and store these products, you can use drop ship to outsource storage. As they are already equipped with the facilities to keep these products appropriately, you can save money renting the new warehouse or buying a property to set up the required storage facility. Ultimately, you will save money while fulfilling the orders on time with the dropship.

Dropshipping & accounting:

Dropshipping – As discussed earlier, it is the easiest, quickest, and most cost-effective way to start an eCommerce business. One can start an eCommerce business even without a proper storage facility with the help of drop shipping. The dropshipping accounting solutions will also help you ensure that the accounting is simple and cost-effective.

Dropshipping will be a perfect choice for the eCommerce store, and one can even test new products in the existing store. Above everything, it is a time-saving choice, so you don’t have to spend particular time on accounting, which will consume your time.

While working in this flexible and creative industry, it’s essential to employ the services of an innovative and forward-thinking accountant. The dropshipping accountant will be up-to-date in terms of technology and software development. They will also be experienced in the eCommerce business and dropshipping accounting.

Just like technology is used to eliminate the need for costlier storage costs and many more, accountants will also use technology to eliminate the need for employees for manual data entry.

online dropshipping business

Potential hurdles that can be solved using accounting software:

  • Integrating with the drop-shipping platform – While using the drop-shipping platform through Aliexpress or any other similar platform, you will probably be using Shopify or other related media. In this case, using accounting software designed for eCommerce, such as Xero, will be very helpful. It will automatically feed the transactions to the accounts, including the dropshipping transactions.
  • Accounting for VAT – VAT on dropshipping supplies can be challenging and tricky, mainly when you sell internationally. Hence seeking advice from a professional dropshipping accountant will save headaches in managing and editing accounts. The accounts are generally forward-thinking and will investigate your requirements to provide the best services. They will offer the best VAT guidance, providing outstanding obligations.
  • Transaction history –Keeping track of the transactions is essential since you can quickly see how much is spent and earned in the business. If you are already busy, the accountant will help you track all the transactions correctly and make them easily manageable.

Accounting solutions for dropshipping business:

The dropshipping accountant will handle all the complicated and time-consuming tasks for you. They will help you increase your savings and quickly address any legal issues. Here is how they can help you:

  1. Tax issues – Many tax challenges may arise when you export products to different countries. The accountant will handle the international taxes successfully and adequately help you in paying the correct tax without spending an extra penny from your hands.
  2. Manage invoices – This is where the experience of using cloud-based software to integrate the systems is invaluable. The accountant will customize the accounting system based on your requirement and integrate all the data to generate invoices.
  3. Inventory management – The software they use will be the perfect tool with 24/7 real-time access to the inventory. It will let you quickly and easily identify which products are selling fast and alert you to any potential cash flow issues before it becomes a headache.
  4. Virtual office – While the accountant will love to meet you, you may operate the business from anywhere in the world. Hence, the virtual office and the best accounting software will enable you to seamlessly look after your finances without disrupting your business.


Dropshipping has become a trendy eCommerce business with multiple customers, suppliers, marketing, and couriers. Hence, losing track of the accountancy and tax obligations can be more accessible. The right dropshipping accountant will provide complete accountancy services so that you can concentrate more on improving the business and get relaxed from handling other financial issues.

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